What is Term Plan ?
Term Life insurance is the purest and most cost effective form of life insurance. This type of life insurance provides financial protection to the nominee in case policyholder dies during policy term. Term Insurance policies provide high life cover at lower premiums. For eg: Premium for `1 Cr Term Insurance cover could be as low as `490** p.m. These fixed premiums can be paid at once or at regular intervals for the entire policy term or for a limited period of time. Premium amount varies basis the type of the premium payment method opted by the buyer.
Why do you need Term Insurance ?
Life is short and one can never foretell what the future holds. To make sure that your family is financially secure even after you are gone, opt for a term insurance. A term plan helps you prepare for such uncertainties. One of the most cost-effective methods by which to mitigate risk, term insurance is popular primarily because it asks for low premiums yet the family of the deceased gets the entire amount.
Here are a few reasons why anyone should buy term insurance:
Low Premium- Since there is no investment element in the insured amount, the premium for all term plans are much lower than any other insurance plans. Any individual might have to pay only about one percent of his annual income to get a life cover. Since this element is not there in the insured amount, the premium for term insurance is less than that of other insurance policies. For example., A policy of 1 crore would have a premium of only Rs 7,400 per annum.
Provides Financial Security- An untimely death is unfortunate and so are the financial liabilities that require to be borne by the family. To prevent such a situation from arising, it is a good idea to invest in a term plan that would take care of the financial needs of the family.
Highly Flexible- Flexibility is one of the major advantages of a term plan. You can select any online or offline plans for which health plans are not mandatory. You can also change the plan and customize a term plan as and when required.
Low Claim Rejection- When you buy any term plan, make sure you disclose correct facts about your health condition, finances, habits etc. As per the recent Insurance Regulatory and Development Authority (IRDA) mandate, no insurance company can claim that there has been a non-disclosure of facts after two years of the policy becoming effective.
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